Have you seen ads for IRS-Approved IRA investments? If
so, beware. The government says these ads are
misleading. Why? Simply because the IRS does not approve
investments for IRAs. Fraudulent promoters are trying to
take advantage of consumers who may be confused about
the role of the IRS when it comes to IRAs. The IRS does
not:

review or approve investments;

advise people on how to invest their IRAs

endorse any investments; or

issue statements that an investment in an IRA is
protected because the IRS has approved a particular
trustee or custodian.

So before you invest, check with your state securities
regulator to make sure the investment and person selling
it are registered. You can find the phone number for
your state securities regulator in the blue pages of the
phone book or contact the Federal Trade Commission.

Source: Consumer Alert: "Taxpayers with IRAs: FYI The
IRS Does NOT Approve IRA Investments," August 1998.

Written by:
Sandra McKinnon, Consumer & Family Economics Specialist,
University of Missouri Extension